AFIRMA is short for Autoregressive Finite Impulse Response Moving Average and is an efficient Metatrader 5 indicator that is centered on a digital filter that precisely shows price movement.
In addition, the AFIRMA MT5 forex indicator is a moving average that is dependent on smooth function fitting.
The indicator does deploy digital filters on all candlesticks, not including the most recent ones, the number of which is equal to the filter time lag.
Price bars are smoothed by cubic spline fitting using least square method.
The indicator has just four input parameters:
- LF transmission width 1/(2*Period) – sets the LF (low frequency) filter transmission width
- Number of delay units in the filter – must be an odd number, thus allowing the filter control Taps prices that enables it form the new smoothed MA value
- Window index – defines the filter approximation using five distinct ways
- Horizontal shift of the indicator in bars – defines the indicators’ level shift gauged in bars
Use can use this indicator to enhance your scalping, day trading and swing trading forex strategies.
The EUR/GBP M30 chart below displays the AFIRMA Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the red curve of the AFIRMA Metatrader 5 forex indicator is ascending.
Sell Signal: Go short when the red curve of the AFIRMA Metatrader 5 forex indicator is descending.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the red curve of the AFIRMA MT5 forex indicator begins to descend.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the red curve of the AFIRMA MT5 forex indicator starts to ascend.
Tips: The blue violet curve is the first part of the indicator, also tagged FIRMA, which is designed using digital filter, while the red curve or ARMA is the second part of the indicator (designed using cubic spline fitting).
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (LF transmission width 1/(2*Periods, Number of delay units in the filter, Window index, Horizontal shift of the indicator in bars), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the afirma.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)